What is the graph (GRT)?
Who are the founders of The Graph?
The Graph was founded in 2018 by Yaniv Tal, Brandon Ramirez, and Jannis Pohlmann. Tal was motivated by his personal experience of how difficult it can be to create new dApps on Ethereum. Together with his team, Yaniv Tal created The Graph with the idea of designing and launching the first decentralized indexing and querying application, as there was nothing similar on the market at the time. In 2020, the team launched The Graph mainnet as a step forward to fully decentralize the use of dApps, which also increased the volume of sub-graph generation on the network. The ultimate goal of the project is to make Web 3 accessible to anyone and allow the creation of dApps without the need for servers or a centralized authority.
The Graph had both a public and private sale, raising $12 million from its public token sale. The project raised another $5 million from a private sale funded by Coinbase Ventures, Digital Currency Group, and Framework Ventures. Multicoin Capital also invested $2.5 million in The Graph. The network is based on nodes to run The Graph mainnet and provides a seamless environment for dApps and developers, while indexers, curators and delegators participate in the market with GRT tokens. GRT is the native cryptocurrency of The Graph network and is used to allocate different resources used within The Graph ecosystem.
As DeFi (decentralized finance) is gaining more traction, The Graph protocol is also becoming more relevant in the broader crypto economy. The Graph protocol allows developers and network participants to use open, public APIs to create subgraphs for various dApps and to query, index, and collect data. In April 2021 alone, The Graph’s hosted service processed 20 billion queries. The network supports Graph Node, which scans the blockchain database used by network participants to organize data. Developers and network participants can use GRT tokens to pay to use and create a subgraph. By indexing data, developers can define the structure of the data in terms of specifying how dApps should use it. Indexers create a decentralized marketplace for queries where consumers can pay in GRT to use the services available on the network.
The network is structured to be supported by Delegators, Indexers, and Curators who provide curating and indexing services to consumers in exchange for GRT tokens. This is how market participants are incentivized to keep improving the APIs and provide data accurately. In addition to The Graph Network, consumers who query subgraphs can pay network participants in GRT tokens through a gateway. In The Graph network hierarchy, indexers are node operators who stake GRT tokens to enable indexing and querying. Network users can build and use applications on Ethereum, IPFS and PoA via GraphQL, while more networks should be accessible in the future.
What makes the graph (GRT) unique?
The Graph network was launched as the first blockchain project of its kind. As the first decentralized marketplace to query and index data for dApps, The Graph has a unique utility. This makes it an interesting project in the blockchain and cryptocurrency sector, which can also be reflected in the price of The Graph. The uniqueness of the project also stems from its purpose, which is to provide easily accessible data for consumers on The Graph network. The protocol runs with the support of network participants, where indexers have the role of node operators to create a single market for indexing and querying data from different blockchain sources in the form of networks like Ethereum. The Graph is the first decentralized marketplace to address the difficulties associated with building dApps in terms of resolving indexing issues and ownership concerns.
What gives the value of the graph?
The Graph has both technical and market value as GRT tokens are traded on the cryptocurrency market. A myriad of specific factors define the value of The Graph and the price of GRT. One thing that gives The Graph value is its blockchain architecture. Factors such as total supply, circulating supply, project roadmap, technical features, widespread use, regulations, adoption, updates, and other major events define The Graph’s market value.
The intrinsic value of The Graph is defined by what the project has to offer users and the economy at large, which in this case is highly accessible curation, indexing, and organization of data collected from other networks. The value of The Graph has also increased with the launch of its mainnet in 2020, as the project evolves towards the ultimate goal of full decentralization of dApps as a gateway to Web 3.
The Graph launched with an initial total supply of 10 billion GRT, and new tokens were issued as indexing rewards. The annual GRT issuance rate started at 3%, but is subject to future technical governance. The Graph burns the withdrawal tax charged to curators, along with 1% of total protocol consultation fees, which is also subject to future technical governance. This means that whether GRT is an inflationary or deflationary asset in the future will depend on the number of queries processed by The Graph. The number of GRT tokens in circulation multiplied by the current price of The Graph is equal to the market capitalization of The Graph, which defines its position in the market and its dominance in the market.
Technical data:
The Graph uses Subgraph Manifest to index data collected from compatible networks, such as Ethereum. A subgraph is described by the default rules of the Subgraph Manifest and contains data related to blockchain events and smart contracts before the data is stored in the network and indexed by network participants. The process begins with dApps adding information to the network with the use of smart contracts, leading to the finality of the recorded data. The data contains information about transactions and all other information related to the source. The Graph Node filters that data and stores it on the network. Information is collected from Consumer inquiries. Consumers can perform a query through a subgraph and obtain the required information. In the token economy of this model, GRT is used to reward network participants and pay for services in The Graph marketplace.
How is the Graph network secured?
The Graph network relies on indexers, curators, and delegators to maintain network functions and protect the blockchain. Indexers operate nodes in a decentralized governance model, competing to offer the best services in The Graph marketplace at the most affordable prices. Curators organize the collected data and rank it for relevance and accuracy, and delegators secure the network indirectly by delegating their GRT coins to indexers.
The Graph network is used to enable the uninterrupted operation and creation of dApps, as well as to obtain and use the data collected from the blockchain networks. All network participants use the native token, GRT, for different purposes. GRT is essential in the network’s rewards system as indexers, curators and delegators are incentivized to improve the marketplace and manage it at the same time.
Delegators can stake their GRT tokens to delegate their stakes to indexers that use locked GRTs to run nodes on the network. Curators are also rewarded in TRB for their curation services, and Consumers are network users who pay for services indexed in TRB. GRT tokens are also used to unlock dApps available through The Graph blockchain and interoperable networks. Network participants earn money in the form of GRT, while GRT can also be traded on the crypto market.
How to choose the Graph wallet
The Graph (GRT) is an ERC-20 type token, which means GRT can be stored in any crypto wallet that supports ETH and ERC-20 tokens. GRT holders can choose from supported mobile, online, hardware and desktop wallets. Some of the most popular hardware wallets where you can store GRT are Ledger Nano S and Trezor One. These are the most secure options as they offer offline storage and backup. However, they also tend to be expensive and require more technical knowledge, so they may be more suitable for more experienced users with higher amounts of GRT. Software wallets provide another option and are free and easy to use. They are available to download as smartphone or desktop apps and can be custodial or non-custodial. With escrow wallets, the service provider manages and backs up the private keys on your behalf. Non-custodial wallets use secure elements on your device to store the private keys. While convenient, they are considered less secure than hardware wallets and may be more suitable for smaller amounts of GRT or more novice users. Among desktop and mobile wallets, popular options for storing and securing GRT are Exodus and Coinomi.
Online wallets are also popular and tend to be affordable, free, and easy to use. These are considered hot wallets and may be less secure than hardware or software alternatives. Once you buy The Graph from a crypto exchange, you can choose to store it there. However, since you will be trusting the platform to take care of your GRT, you should select a trusted service with a track record of security and custody. Online wallets are more suitable for holding smaller amounts or more experienced frequent traders.
Graphic proof of stake:
The graph cannot be mined and the system works based on the proof-of-stake consensus mechanism. Delegators on the network can stake their GRT by delegating it to node operators (Indexers). The rewards they receive incentivize delegators to participate in the network, ensuring that the network is secure and operational.
We must take into account:
The Graph is a unique project that creates a new, decentralized marketplace for accessible data obtained through interoperability between The Graph mainnet and supporting networks. The ultimate goal of the creators of The Graph is to make Web 3 easily accessible while creating an advanced ecosystem with DLT architecture where dApps can operate seamlessly. The chart can also be traded on the crypto market, and traders and investors can buy and sell GRT for profit.
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